Indonesia’s Policy Amid Surging Jet Fuel Prices Driven By The Iran Conflict

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Indonesia’s Policy Amid Surging Jet Fuel Prices Driven By The Iran Conflict

Gasoline tankers are parked at Ahmad Yani International Airport in Semarang, Indonesia, on April 19, 2026. The conflict in the Middle East involving the United States, Israel, and Iran has led to a surge in global jet fuel prices, resulting in higher airfares, including in Indonesia. In recent weeks, increasing avtur prices have significantly raised airlines' operating costs, prompting ticket price increases. In response, the Indonesian government has reduced the value-added tax (VAT) on economy class tickets for two months to mitigate the impact of rising fuel surcharges and maintain affordable air travel amid escalating energy costs. (Photo by Agoes Rudianto/NurPhoto)


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